The beauty of an Urbane Professional is that you now have money, or so you thought. Why is it that no matter how much money we make, it still feels like you don’t have any extra? I will tell you why. Because, you do not know how to manage your money.
As an Urbane Professional working for a Fortune 500 company, YOU DO NOT KNOW HOW TO MANAGE YOUR MONEY! Yes, I said it and I feel ten pounds lighter. No one taught you how to go from a low/middle class family to a young professional making more than your parents did at your age and probably more than they do now.
How do you manage something you never had until your mid 20’s? It seems simple, but it is not. We learned at the age of 5, in the game of Monopoly, to buy property, to invest, to stay out of jail, and to pay our debts. The funny thing is the only thing we remembered from Monopoly is how to stay out of jail and pay our debts. What happened to investing? What happened to buying property and collecting rent? Isn’t that what Monopoly taught us how to do?
As an Urbane Professional, many of us did not grow up in households that learned these principles. But it is not too late. There are hundreds of free classes that will teach you how to manage your money. For lack of knowledge my people perish (Hosea 4:6). And personally I am tired of perishing.
Here are some simple principles that can help you today:
- Stop using your debit card, carry cash– We have gotten so use to swiping a credit card that we do not understand the value of money. If you carry cash and pay for items with cash, you actually have to count out that 200 dollars for that pair of shoes or video game system and are less likely to hand over money unless it is something you really need. Don’t believe me try it.
- Use a credit card to your benefit, stop benefiting the credit card company– I have an American Express and for every dollar I spend I get a point that can be used to purchase items. I pay everything on this card. Wait, but listen to this next part. I then go pay off what I spent. What? Pay off what you spent? Yes, that same day or no later than the next billing cycle, I pay off what I spent on the card. I also don’t go over 30-50% of my limit because that will lower my credit score. I only use the card to get points versus using it for lack of money. Most Urbane Professionals use credit cards when they do not have the money and that is not how the wealthy use credit. Do your research.
- Stop just saving your money, invest it– No matter how much you save you will never make any real money. The wealthy don’t make money off of saving it, they make it off of stocks, bonds, 401k match, buying assets, etc… Do you know what happens to your money? You put your money in the bank and they give you a 1% return and they turn around and give someone a loan at 18% on your money. Saving your money is good if you want to continue to collect that 1% when the bank is lending your money at 18%. Doesn’t add up to me.
I could go on and on, but lets start here and see how we do. In the meantime, go ahead and dust off the old Monopoly game and see what other lessons can be learned.